May 2010 Sales Taxes in Illinois - Illinois General Assembly

Commission on Government
Forecasting and Accountability
COMMISSION CO-CHAIRMEN
Senator Jeffrey M. Schoenberg
Representative Richard P. Myers
SENATE
Senator Bill Brady
Senator Michael Frerichs
Senator Matt Murphy
Senator Dave Syverson
Senator Donne Trotter
HOUSE
Representative Patricia Bellock
Representative Kevin McCarthy
Representative Elaine Nekritz
Representative Raymond Poe
Representative Al Riley
EXECUTIVE DIRECTOR
Dan R. Long
DEPUTY DIRECTOR
Trevor J. Clatfelter
REVENUE MANAGER
Jim Muschinske
AUTHOR OF REPORT
Benjamin L. Varner
EXECUTIVE SECRETARY
Donna K. Belknap

TABLE OF CONTENTS
Sales Taxes in Illinois – May 2010
PAGE
Executive Summary
i
I. Illinois Sales Taxes 1
II. History of Sales Taxes 2
III. Distribution of Funds 3
IV. Revenues and Projections 5
V. History of Exemptions 7
VI. Comparison of States 9
VII. Other Sales Taxes 11
VIII. Sales Tax Base 15
IX. Internet Taxation 19
X. Flow Chart for Sales Taxes 23
TABLES:
1 Historical Illinois Sales Tax Rates 2
2 General Revenue Sales Tax Receipts 5
3 All Appropriated Sales Tax Receipts 6
4 Surrounding States Sales Tax Rates 9
5 2007 State General Sales Tax Revenue for Surrounding States 10
6 County Public Safety Sales Tax Rates 14
7 Top Ten Industries by SIC Code 16
8 Sales Tax Receipts by Sector 17
9 2009 State Sales Tax Receipts by County 18
10 2009 State Sales Tax Revenue by Municipality 18
11 Streamlined Sales Tax Project States 22
CHARTS:
1 Sales and Use Tax Exemptions 8
2 Illinois Sales Tax Flowchart 24-25
APPENDIX:
1 Illinois Sales Tax Exemptions 26
2 Illinois Sales Tax Exemption Statistics 27
3 Sales Tax Rate by State 28
4 State Sales Tax Revenue 29
5 Illinois Home Rule Units 30-33
6 2009 State Sales Tax Receipts by County 34-35

EXECUTIVE SUMMARY
Sales taxes are a prominent factor in Illinois’ taxing structure. They are the general
revenue fund’s second largest revenue-generating source and make up approximately
one quarter of total revenues. Sales tax laws within Illinois as well as throughout the
nation are diverse, and sometimes confusing. The following report attempts to provide
basic facts and information that surround sales tax issues in Illinois. This report builds
on the Commission’s 2001 report, “Sales Tax Issues in Illinois” by updating the
statistics therein and expands the analysis to include an examination of the sales tax
base.
• To begin, the report gives definitions for both the sales Use Tax and Occupation
Tax. Also, a sales tax rate, revenue, and exemption history is provided. Illinois’
sales tax rate has grown from 2% in 1933 to the current rate of 6.25% which was
instituted in 1990. Sales tax revenues are divided between State and local
governments: 80% of the tax goes into the State’s treasury and 20% is directed back
to local municipalities in which the sale was made. Local governments also have
the option of instituting home-rule taxes, which bring additional revenue to their
cities.
• Although general revenue sales taxes have historically grown, fiscal year 2009
yielded a disappointing figure of $6.77 billion, which was a 6.1% decrease from the
previous year. This was the largest decline in sales tax revenue in over 60 years,
though FY 2010 revenues are estimated to decline even more. These declines are
associated with the extended recession that began in approximately December of
2007. The Commission estimates that the State will see some small growth in
FY 2011 as the economy begins to climb out of the recession.
• Total sales tax exemptions were approximately $3.4 billion in fiscal year 2008. The
largest exemption being the Food, Drugs, and Medical Appliance rate reduction
which accounted for $1.4 billion or just over 40% of total exemptions.
• Illinois has one of the highest sales tax rates in the nation. Illinois was tied for 10 th
highest as of April 2010. Illinois also had the 2 nd highest rate when compared to
surrounding states. Only Indiana at 7.00% had a higher rate.
• There are numerous other local sales taxes in Illinois including Business District
taxes, County Motor Fuel taxes, Home Rule and Non-home rule taxes, Mass
Transit District taxes, County Public Safety taxes, among others.
• The Illinois sales tax was designed to primarily tax real property. The largest
amount of sales tax revenue comes from the Automotive and Filling Station sector
of the economy which provides just below 21% of total sales tax revenue. This
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• The majority of the sales tax base is located within Cook and the Collar Counties
with pockets of sales tax revenue coming from the larger downstate cities.
• The Internet has greatly affected virtually all facets of economic activity, including
states’ sales tax revenues. Currently, online retailers are subject to Illinois sales
taxes if they have a nexus within the State. The Department of Revenue estimated
that over $143 million of sales taxes related to online commerce went unpaid in
FY 2008. The department estimated that this number would grow to $153 million
and $163 million in fiscal years 2009 and 2010
• Another important issue that will have an impact on sales taxation is the Streamlined
Sales Tax Project (SSTP). The SSTP is an effort by states to simplify and
modernize sales and use tax collection and administration. The goal of the Project
is to substantially reduce or eliminate the costs and burdens of sales tax compliance
for businesses via a combination of simplified laws and administrative policies.
• Finally, a sales tax flowchart has been developed in order to depict the intricacies of
Illinois sales taxation. Several decisions and many steps are involved in order to
determine what the end sales tax will be for a consumer.
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Illinois Sales Taxes
A sales tax is a levy placed on a good or service when it is purchased from a company
that has a physical presence (or “nexus”) in the same state as the consumer. When a
consumer buys a good or service from a retailer that is outside of his or her state, they
pay a use tax. Illinois is one of 45 states (plus the District of Columbia) in the nation
that requires its residents to pay sales taxes when purchasing retail merchandise. If the
seller does not charge Illinois Sales Tax, the purchaser owes the tax directly to the
Department.
Illinois sales taxes are actually derived from four different tax acts; the Retailers’
Occupation Tax (ROT) and its complement the Use Tax (UT), the Service Occupation
Tax (SOT) and its complement the Service Use Tax (SUT).
The Retailers’ Occupation Tax is generally referred to as the sales tax. The tax is
imposed on Illinois retailers on the gross receipts from sales of tangible personal
property. Illinois retailers forward the collected Retailers’ Occupation Tax to the
Department of Revenue for deposit into the State’s Treasury. The ROT’s partner, the
Use Tax, applies to Illinois purchasers who buy property out of state at a lower tax rate
or from a vendor who does not have a physical nexus within the State. The difference
between the lower tax rate and Illinois’ sales tax rate must be forwarded to the
Department of Revenue as a Use Tax. The purpose of the Use Tax is to protect in-state
retailers from competition from out-of-state retailers who may not be subject to the
Retailers’ Occupation Tax.
The Service Occupation Tax is imposed on service providers when tangible personal
property is transferred within the course of performing a service. The tax is measured
by the selling price of the tangible personal property transferred as an incident to the
sale of the service. Likewise, the Service Use Tax is also imposed upon the purchaser
for the privilege of using property that was acquired incident to the purchase of a
service. However, this tax would apply when a purchaser obtains property from an
out-of-state service provider who does not have a “nexus” within the State and is not
obligated to collect Illinois sales taxes.
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History of Sales Taxes
State sales taxes originated during the Great Depression, when the main source of
revenue for state and local governments, property taxes, collapsed with property
values. In 1930, twenty-three states began using the sales tax as an additional revenue
source. Due to problems with our own State budget, Illinois adopted a “temporary” 2
percent sales tax in 1933. In 1935, the tax was made permanent, and the rate was
raised to 3 percent.
While the State rate ranged between 2 and 3 percent, municipalities and counties were
allowed to impose a local sales tax beginning in 1955 and 1959, respectively. Also, in
1955 the Use Tax was added at the same rate as the Retailers’ Occupation Tax. Six
years later, the Service Use Tax and Service Occupation Taxes were added to the
Illinois sales tax structure. By 1984, the State rate increased to 5 percent and the
County Supplementary Tax Act authorized all counties except Cook County to impose a
0.25 percent sales tax. In addition, the State tax on certain food and medical supplies
and machinery and parts used in manufacturing was eliminated (local taxes remained on
the exempt items).
Effective January 1, 1990, as part of Sales Tax Reform, a uniform State sales and use
tax rate on general merchandise of 6.25 percent was established. The local sales tax
acts and the County Supplementary Tax Act were repealed and the Department of
Revenue began administering Non-Home rule sales taxes in September 1990. Many of
these taxes were already in effect but were administered by the locals themselves.
While the number of local municipalities and counties instituting home rule sales tax
rates has grown, the State sales tax rate has remained constant at 6.25% for the past
twenty years. Table 1 outlines the history of Illinois sales tax rates.
Table 1. HISTORICAL ILLINOIS SALES TAX RATES
Effective Date
Rate
July 1, 1933 2.00%
July 1, 1935 3.00%
July 1, 1941 2.00%
July 1, 1955 2.50%
July 1, 1959 3.00%
July 1, 1961 3.50%
July 1, 1967 4.25%
October 1, 1969 4.00%
January 1, 1984 5.00%
January 1, 1990 - Current 6.25%
Source: Illinois Department of Revenue
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Distribution of Funds
The current State sales tax rate is 6.25%, of which the State retains 80% of the tax and
local governments receive the remaining 20%. Therefore, a 5% sales tax is given to
the State, and 1.25% is provided to local governments. Below is the distribution
pattern of the Illinois sales and use taxes as described by the Illinois Legislative
Research Unit in their March 2010 report, “Illinois Tax Handbook for Legislators” and
the Illinois Department of Revenue website.
Proceeds from the 5% portion of the State sales and use taxes (or 80% of total State
sales taxes) contribute to the following:
• 1.75% to Build Illinois Fund;
• 3.8% to Build Illinois Fund to retire bonds;
• 0.27% to Illinois Tax Increment Fund;
• 80% of net tax revenue on Illinois coal bought by a new electric generating
facility that received state financial aid, to the Energy Infrastructure Fund (for
the first 25 years that the facility buys Illinois coal).
• 25% reserved for transfer to Common Schools Special Account Fund;
• Remainder to the General Revenue Fund, with two transfers out:
1) 3/32 of net revenue from counties and municipalities that have Downstate
mass transit districts, to the Downstate Public Transportation Fund
2) 3/32 of net revenue from Madison, Monroe, and St. Clair Counties to the
Downstate Public Transportation Fund.
Proceeds from the 1.25% portion of the State sales tax (or 20% of the total State sales
tax) is returned to local governments in the following manner:
• 80% of net proceeds to the Local Government Tax Fund
• 20% of net revenue to the County and Mass Transit Fund
Proceeds from the 1.25% portion of the State use taxes (or 20% of the total State use
tax) are put into the State and Local Sales Tax Reform Fund and distributed in the
following manner:
• 20% is distributed to Chicago
• 10% is distributed to the Regional Transportation Authority (RTA)
• 0.6% is distributed to the Metro-East Mass Transit District (MED)
• $3.15 million is distributed to the Build Illinois Fund
• The remaining balance of the State and Local Sales Tax Reform Fund is
distributed to municipal and county governments (except Chicago) based on
each one’s population in proportion to the total state population.
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Recently, new legislation, related to the Illinois Jobs Now! construction program,
increased the rate of sales tax on certain types of products. These items were primarily
items that previously were taxed at the 1% rate under the Food or Drug exemptions.
State sales tax revenue on these products would be used to partially fund the program.
As part of Public Act 096-0034, beginning September 1, 2009, each month the
Department of Revenue is to pay into the Capital Projects Fund the estimated amount of
sales tax that represented 80% of the net revenue realized for the preceding month from
the sale of candy, grooming and hygiene products, and soft drinks that were taxed at
1% prior to August 1, 2009 but that are now taxed at 6.25%.
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Revenues and Projections
Sales tax revenues are one of Illinois largest revenue sources, second only to the
personal income tax. In FY 2009, general revenue fund (GRF) sales taxes were $6.77
billion, which was down 6.1% from the all-time high of $7.21 billion in FY 2008.
This was the worst decline since 1950, which is as far back as the Commission has
data. It is expected that this will be surpassed in FY 2010, when sales taxes are
expected to be down 8.5%. To illustrate to the reader how severe the current
recession has affected sales tax revenue, between FY 1950 and FY 2008 GRF sales
tax had only declined 5 times previously and never two years in a row. Prior to
FY 2009, the largest declines were -2.9% in FY 1950 and -1.9% in FY 1981.
Between fiscal years 2000 and 2009, sales taxes were quite volatile when compared to
the previous decade. GRF sales taxes increased 4.2% per year during the booming
1990’s, while they grew at a slower average rate of 2.0% during the turbulent 2000’s.
Besides growing at a slower rate, GRF sales taxes were much less dependable. From
FY 1990 thru FY 1999, sales taxes grew at least 2% every year except FY 1991 when
growth was only 1%. In contrast, during the 2000’s only four of the ten years had
sales tax growth of over 2% and actually had two years of declines (FY 2001 and
FY 2009).
It also should be noted that sales tax revenues as a percentage of total general revenues
has declined from almost 30% in fiscal year 1990, to less than 23% in fiscal year 2010.
It is anticipated that fiscal year 2011 will be a transitional year with slow growth
(1.6%) as the economy comes out of the recessionary low to the recovery phase of the
business cycle. Table 2 provides historical details and projections of the general
revenue sales tax beginning in fiscal year 2000.
Table 2. GENERAL REVENUE SALES TAX RECEIPTS
($ billions)
Fiscal Year
Sales Tax
Revenue % Growth
Total General
Revenue* % Growth
2000 $6.03 7.5% $23.25 7.3% 25.9%
2001 $5.96 -1.1% $24.11 3.7% 24.7%
2002 $6.05 1.6% $23.38 -3.0% 25.9%
2003 $6.06 0.1% $22.79 -2.5% 26.6%
2004 $6.24 2.9% $25.43 11.6% 24.5%
2005 $6.59 5.8% $26.16 2.9% 25.2%
2006 $7.09 7.5% $27.36 4.6% 25.9%
2007 $7.14 0.6% $28.64 4.7% 24.9%
2008 $7.21 1.1% $29.66 3.6% 24.3%
2009 $6.77 -6.1% $29.14 -1.7% 23.2%
2010** $6.20 -8.5% $27.90 -4.3% 22.2%
2011** $6.30 1.6% $26.56 -4.8% 23.7%
Sales as a % of
Total
*Total General Revenue excludes cash management transactions including short term borrowing and certain transfers
** CGFA estimates
Source: Illinois Department of Revenue
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All Appropriated (AAP) sales tax revenues encompass the entire amount of sales tax
revenues that Illinois receives. GRF sales tax amounts were just those that went into
the General Revenue Funds which were the General Revenue Fund (0001) and the
General Revenue - Common School Special Account Fund (0005). The AAP sales tax
revenue amount includes those monies plus the amounts that went into the Home Rule
Municipal Retailers’ Occupation Tax Fund (0138), the State and Local Sales Tax
Reform Fund (0186), the Illinois Tax Increment Fund (0281), the McCormick Place
Expansion Project Fund (0377), the Tax Compliance and Administration Fund (0384),
the Capital Projects Fund (0694), and the Build Illinois Fund (0960)
AAP sales tax revenues historical trends mirror the general revenue trends. All
Appropriated revenues grew steadily between fiscal year 1990 and 2000 but grew
slower in the 2000’s. Similar to GRF sales tax revenue, AAP revenue declined in
FY 2009 and is expected to decline significantly again in FY 2010. For FY 2009, AAP
sales tax revenue was $8.22 billion. A decline to $7.58 billion is expected in FY 2010
with small growth in FY 2011. Table 3 provides a historical review of AAP sales tax
revenues
Table 3. ALL APPROPRIATED SALES TAX RECEIPTS
($ billions)
Fiscal Year AAP Sales Tax Revenue % Growth
2001 $6.96 -0.8%
2002 $7.06 1.3%
2003 $7.05 0.0%
2004 $7.34 4.1%
2005 $7.78 6.1%
2006 $8.43 8.3%
2007 $8.60 2.1%
2008 $8.73 1.5%
2009 $8.22 -5.9%
2010* $7.58 -7.8%
2011* $7.70 1.7%
* CGFA estimates
Source: Illinois Department of Revenue
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History of Exemptions
Upon the inception of the State sales tax, almost all general merchandise was subject to
taxation. However, as the years progressed, the amount of allowed exemptions
escalated along with the sales tax rate, yielding a smaller tax base but continued
revenue growth.
Beginning in 1933 (when the State sales tax was implemented), allowed exemptions
included feed and seed for farmers and occasional sales exemptions. Between 1955 and
1979, the number of exemptions continued to grow to include among other things, sales
to exempt organizations, newsprint and ink, rolling stock, and farm chemicals. But it
wasn’t until after 1979 that the amount of exemptions allowed by the State began to
proliferate (Appendix 1 at the end of this report provides a list of exemptions and the
year they were enacted).
In 1979, sales taxes were eliminated on sales of machinery and equipment to
manufacturers. Exemptions for machinery and equipment to printers, coal mines, oil
field drillers, distillers of ethanol, and farmers quickly followed in 1980. Also in 1980,
the State began to reduce the tax rate on sales of food (grocery), drugs, and medical
appliances to individuals. Between 1985 and 2000 sales tax exemptions were added for
property used in pollution control facilities, property used with an enterprise zone, legal
tender, medallions, and bullion, photo processing machinery, coal and oil machinery,
leased property to hospitals or governmental bodies, and many more. In January 1995,
manufacturers began earning additional sales tax credit (Manufacturer’s Purchase
Credit or MPC) that could be applied toward the tax due on purchases of non-exempt
items. MPC earned is a percentage of the tax the manufacturer would have paid on the
purchase of machinery and equipment if the machinery and equipment had not been
exempt from tax.
Many organizations that do not have to pay sales taxes on their purchases also increased
in number. Certain senior citizen organizations, county fair associations, not-for-profit
music or dramatic arts organizations, and certain licensed day care centers are all
exempt from sales taxation. In addition, sales by elementary or secondary teachersponsored
student organizations and certain sales by not-for-profit service organizations
operating for the benefit of persons 65 or older are also exempt from sales taxes.
In 2003, two exemptions related to motor fuels were enacted. The first exemption was
related to majority blended ethanol fuel. The second was a discount and exemption
associated with biodiesel. Legislation exempting sales of jet fuel and petroleum
products used or consumed by any aircraft support center directly in the process of
maintaining, rebuilding, or repairing aircraft from the sales tax was passed in 2007.
Chart 1 provides estimates for sales tax exemptions for Illinois as estimated by the
Illinois State Comptroller in their “Tax Expenditure Report”. In FY 2008, exemptions
to the Sales and Use taxes were estimated at $3.4 billion. As depicted in the chart, the
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food, drug, and medical appliance sales tax reduction ($1.4 billion) accounted for the
greatest amount of sales tax exemptions, followed by sales to exempt organizations
($515 million) and the traded-in property exemption ($357).
Appendix 2 provides historical figures for sales tax exemptions from fiscal years 1996
through 2008. As the appendix indicates, the dollar amount of all exemptions has
increased steadily over the past 12 years. Total sales and use tax exemptions have
grown by approximately 50% during that time period. Tax exemptions of the sales and
use taxes actually peaked in FY 2007 at $3.9 billion but fell approximately $570 million
in FY 2008. The food, drugs, and medical rate reduction has grown an average of
4.8% per year, while total sales and use tax exemptions have averaged growth of 3.8%
between FY 1996 and FY 2008.
Chart 1. Sales and Use Tax Exemptions
(FY 2008)
$1,600
$1,400
$1,200
Dollars (in Millions)
$1,000
$800
$600
$400
$200
$-
Food, Drugs, Sales to Exempt
and Medical Organizations
Appliances Rate
Reduction
Traded-In
Property
Exemption
Farm Chemicals
(Includes Feed
and Seed)
Exemption
Manufacturing
and Assembling
Machinery
Exemption
Gasahol
Discount
Retailer's
Discount
Biodiesel
Discount and
Exemption
All Other
Source: Illinois State Comptroller
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Comparison of States
Sales taxes are not unique to Illinois. Virtually every state in the nation has some sort of
sales taxation. Table 4 provides sales tax rates for Illinois and its neighboring states.
As indicated, Illinois’ state sales tax rate at 6.25% is the second highest among all of its
neighboring states behind Indiana at 7.00%. In fact, Illinois 6.25% sales tax ranks
among the nation’s highest tax rates. Currently, Illinois is tied with Texas and
Massachusetts for the 10th highest state sales tax rate. Rates range between 0% (for
Alaska, Delaware, Montana, New Hampshire, and Oregon) and 7.25% (California).
Appendix 3 provides details of each of the states sales tax rates.
Not only do sales tax rates vary widely across the nation, but so do the items taxed and
the definition of these items. For example, some states tax necessity items (such as
food, clothing, medical appliances, and drugs), while some do not. Others have a
reduced tax rate. Even more, the definition of the non-taxable goods may differ among
states. Non-taxable food in one state might be defined as only food that is consumable
off the sales premises, while another state may exempt all food from sales taxation,
regardless of where it will be consumed.
Thus, the diversity of sales tax rates, applied products, and accompanying definitions
make it difficult, at best, to form any kind of analytical state comparison of the various
states sales tax revenues. Table 5 provides a numerical summation of State sales tax
revenues for Illinois and its boundary states and Appendix 4 provides details for every
state. Total revenues generated from sales taxation may have a direct relationship with
state population, the sales tax rate, as well as the comprehensiveness of the items taxed.
Although Illinois ranks first among its neighboring states for total sales tax revenues at
$7.8 billion, when considering these revenues on a per-capita basis, Illinois is in the
lower half. Residents in Illinois paid approximately $608 in sales tax in 2007 on
average which was well below what residents of Indiana paid ($855). On a per capita
basis, the State of Missouri had the lowest amount at $557.
Table 4. SURROUNDING STATES SALES TAX RATES
State State Rate Range of Local Rates
Missouri 4.225% .5% - 6. 625%
Wisconsin 5.00% 0% - 1.5%
Iowa 6.00% 0% - 2%
Kentucky 6.00% 0%
ILLINOIS 6.25% 0% - 4.25%
Indiana 7.00% 0%
Source: Sales Tax Institute, as of 4/1/2010
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Table 5. 2007 STATE GENERAL SALES TAX REVENUE FOR
SURROUNDING STATES
State
Total General Sales Tax Receipts
($ billion)
State
Total General Sales Tax Receipts
per Capita
ILLINOIS $7.80 Indiana $855
Wisconsin $4.16 Wisconsin $742
Missouri $3.27 Kentucky $664
Kentucky $2.82 ILLINOIS $608
Iowa $1.79 Iowa $598
Indiana $5.42 Missouri $557
Source: 2010 Statistical Abstract, U.S. Census Bureau
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Other Sales Taxes
The Illinois Department of Revenue also collects other local sales taxes above and
beyond the state and local rate of 6.25%. Listed below are these various other local
sales taxes as described by the Department of Revenue:
Business District Retailers’ Occupation Tax (65 ILCS 5/11-74.3-1 to 11-74.3-6)
Municipalities that have approved a business district development or redevelopment
plan and have elected to impose a tax by ordinance may impose a Business District
Retailers’ Occupation and Service Occupation Tax on sales of general merchandise
within the business district. The tax may not be imposed on sales of items that will be
titled or registered with an agency of state government or on qualifying food, drugs,
and medical appliances. The Tax may be imposed in 0.25% increments and cannot
exceed 1%.
Chicago Home Rule Municipal Soft Drink Retailers’ Occupation Tax
(65 ILCS 5/8-11-6b)
The Chicago Home Rule Municipal Soft Drink Occupation Tax is imposed on persons
who sell canned or bottled soft drinks at retail in Chicago. The rate is 3% of gross
receipts from soft drinks sold at retail. “Soft drinks” include (but are not limited to):
• soda water,
• carbonated water,
• colas, and
• drinks containing less than 50 percent natural fruit or vegetable juice.
The following list includes examples of drinks that are not included in the definition of
soft drinks:
Fountain drinks,
• Noncarbonated water,
• Coffee,
• Tea,
• Infant formula,
• Milk or milk products,
• Drinks containing 50 percent or more natural fruit or vegetable juice,
• Nonalcoholic drink mixes, and
• Soft drinks when mixed and sold in an alcoholic drink.
• Drinks containing 50 percent or more natural fruit or vegetable juice,
• Nonalcoholic drink mixes, and
• Soft drinks when mixed and sold in an alcoholic drink.
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County Motor Fuel Tax (55 ILCS 5/5-1035.1)
DuPage, Kane, and McHenry counties have imposed a tax on the retail sale of motor
fuel at a rate not exceeding 4 cents per gallon. DuPage, McHenry, and Kane counties
levy the tax at the maximum rate of 4 cents per gallon.
DuPage County Water Commission Tax (70 ILCS 3720/4)
The DuPage Water Commission Tax of 0.25% is imposed on sales of general
merchandise within the boundaries serviced by the DuPage Water Commission. The
tax rate is 0.25%. A “use” tax is also imposed at the same rate. The tax revenue is
used to support the DuPage County Water Commission which pipes water from Lake
Michigan throughout DuPage County.
Home Rule and Non-home Rule Sales and Use Taxes
• Home Rule County Retailers’ Occupation Tax — 55 ILCS 5/5-1006
• Home Rule County Service Occupation Tax — 55 ILCS 5/5-1007
• Home Rule Municipal Retailers’ Occupation Tax — 65 ILCS 5/8-11-1
• Home Rule Municipal Service Occupation Tax — 65 ILCS 5/8-11-5
• Non-home Rule Municipal Retailers’ Occupation Tax — 65 ILCS 5/8-11-1.3
• Non-home Rule Municipal Service Occupation Tax — 65 ILCS 5/8-11-1.4
Home rule units of local government are authorized to impose a Home Rule sales tax
and certain non-home rule units of local government are authorized to impose a Nonhome
Rule sales tax to be collected by the department. Both taxes are imposed on the
same general merchandise base as the state sales tax, excluding titled or registered
tangible personal property (such as vehicles, watercraft, aircraft, trailers, and mobile
homes), and qualifying food, drugs and medical appliances.
The Home Rule sales tax is in 0.25% increments with no maximum rate limit. The
Non-home Rule sales tax is in 0.25% increments with a 0.50% maximum rate limit.
As of April 2010, Illinois had 200 home rule units of government in Illinois. 125 of
these were enacted by referendum, while 75 qualified as a home rule unit due to their
population. Cook County is the only home rule county in Illinois. Appendix 5 contains
a list of all the home rule units and their combined sales tax rate which range from
6.25% in areas where home rule has passed but have not raised sales taxes to 11.5% in
certain business districts in Bellwood.
The department also administers the Chicago Home Rule Use Tax on automobiles and
other titled or registered items sold by dealers located in the counties of Cook, Kane,
Lake, McHenry, DuPage, and Will selling items that will be registered to an address
within the corporate limits of Chicago. The Chicago Home Rule Use Tax is 1.25%.
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Mass Transit District Taxes
• Metro-East Mass Transit District (MED) Retailers’ Occupation Tax
• (70 ILCS 3610/5.01(b))
• Metro-East Mass Transit District (MED) Service Occupation Tax
• (70 ILCS 3610/5.01(c))
• Metro-East Mass Transit District (MED) Use Tax
• (70 ILCS 3610/5.01(d))
• Regional Transportation Authority (RTA) Retailers’ Occupation Tax
• (70 ILCS 3615/4.03)
• Regional Transportation Authority (RTA) Service Occupation Tax
• (70 ILCS 3615/4.03)
• Regional Transportation Authority (RTA) Use Tax
• (70 ILCS 3615/4.03)
The Metro-East Mass Transit District (MED) imposes a sales tax in parts of Madison
and St. Clair counties. The Regional Transportation Authority (RTA) is authorized to
impose a sales tax in Cook, DuPage, Kane, Lake, McHenry, and Will counties. These
tax revenues are used to support public mass transportation systems.
The MED imposes taxes at the following rates:
• 0.25% sales tax on general merchandise and sales of qualifying food, drugs,
and medical appliances in Madison County
• 0.75% sales tax on general merchandise (excluding items that are titled or
registered) and sales of qualifying food, drugs, and medical appliances in St.
Clair County
• 0.25 percent sales tax on sales of titled or registered general merchandise in
St. Clair County and Madison County
The RTA imposes taxes at the following rates:
• 1.00% sales tax on general merchandise in Cook County
• 1.25% sales tax on qualifying food, drugs, and medical appliances in Cook
County
• 0.75% sales tax on general merchandise and qualifying food, drugs, and
medical appliances in DuPage, Kane, Lake, McHenry, and Will counties
Metro-East Park and Recreation District Tax (70 ILCS 1605)
The Metro-East Park and Recreation District tax of 0.10% is imposed on sales of
general merchandise within the district’s boundaries. The tax is imposed on the same
general merchandise base as the state sales tax, excluding titled or registered tangible
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personal property (such as vehicles, watercraft, aircraft, trailers, and mobile homes),
and qualifying food, drugs and medical appliances.
Metropolitan Pier and Exposition Authority (MPEA) Food and Beverage Tax
(70 ILCS 210/13(b))
A retailers’ occupation tax on the gross receipts from food prepared for immediate
consumption, alcoholic beverages, and soft drinks is imposed on sales within Chicago’s
Metropolitan Pier and Exposition Authority (MPEA) boundaries. The tax rate is 1%.
Revenues from this tax are deposited into the MPEA Trust Fund to pay debt service on
all MPEA bonds and refunding bonds.
Special County Retailers’ Occupation Tax for Public Safety (55 ILCS 5/5-1006.5)
County governments are authorized to impose, with voter approval, a countywide tax
(in 0.25% increments) for public safety expenditures to be collected by the department.
The tax is imposed on the same general merchandise base as the state sales tax,
excluding titled or registered tangible personal property (such as vehicles, watercraft,
aircraft, trailers, and mobile homes) and qualifying food, drugs and medical appliances.
Thirty five counties in Illinois have county public safety sales taxes. Table 6 shows
these counties and their associated tax rates.
Table 6. COUNTY PUBLIC SAFETY SALES TAX RATES
County Tax Rate County Tax Rate
Boone 0.50% Macon 0.25%
Brown 0.25% Marion 0.25%
Bureau 0.50% Mcdonough 0.50%
Carroll 0.25% Menard 1.00%
Cass 1.00% Moultrie 0.50%
Champaign 0.25% Peoria 0.50%
Clark 1.00% Perry 0.50%
Clay 0.50% Pike 0.50%
Effingham 0.25% Richland 0.50%
Fulton 0.50% Saline 0.75%
Henderson 1.00% Stephenson 0.50%
Jefferson 0.25% Tazewell 0.50%
Jersey 0.50% Union 0.25%
Kendall 1.00% Vermilion 0.25%
Knox 0.25% Wayne 0.75%
LaSalle 0.25% Winnebago 1.00%
Logan 0.50% Woodford 1.00%
Marion 0.25%
Source: Illinois Department of Revenue
-14-

Sales Tax Base
The Illinois sales tax base is made up primarily of transfers of tangible personal
property. Even though the service sector has become a greater part of the Illinois
economy, Illinois is one of the states that taxes services the least. In the Federation of
Tax Administrators 2007 update of their Service Tax Survey, Illinois taxed the fifth
fewest amount of services. Illinois taxed only 17 out of 168 identified services, the
majority of those being related to public utilities. This is in spite of over 40% of
Illinois’ economy being service related.
Many states have not taxed services as broadly as tangible property due to when sales
taxes were originally enacted. Many states sales taxes were enacted in the 1930s.
During this time, services accounted for a smaller portion of overall economic activity.
Because of this, most states have tangible personal property as their primary base. This
has limited the amount of sales tax revenue, as the country’s economy has become more
service oriented. See the Commission’s report, “Service Taxes: 2009 Update” for
more information on this topic.
To examine the sales tax base, the Commission analyzed Standard Industrial
Classification (SIC) code data from the Illinois Department of Revenue to discover
from what sectors of the economy sales tax receipts come from and how these revenues
have changed over the last decade. Growth rates for sales tax receipts from individual
sectors of the economy were also calculated. Finally, the changes in the make up of the
sales tax base were calculated. The results of these calculations can be seen in Tables
7 and 8.
Looking at individual SIC codes, restaurants, car dealerships, and department stores
were the three largest industries that collected Illinois state sales taxes in 2009. The
Eating Places (SIC Code 5812) was the largest industry at 12.3% of total state sales
taxes collected. Two other industries, New and Used Car Dealers (SIC Code 5511)
and Department Stores (SIC Code 5311) contributed just over 12% each also. The ten
industries that collect the most state sales tax can be found in Table 7. These ten
industries accounted for approximately 63% of all the state sales tax revenue received.
For data from each of the individual SIC codes please see the Department of Revenue’s
“The Sales Tax for 2009 Annual Report” which can be found at
http://www.revenue.state.il.us/AboutIdor/TaxStats/SICAnnual09.pdf.
-15-

Table 7. TOP TEN INDUSTRIES BY SIC CODE
SIC CODE
SIC Code
Percent of Total Sales
Tax Receipts, 2009
Rank
Eating Places 5812 12.3% 1
New and Used Car Dealers 5511 12.2% 2
Department Stores 5311 12.1% 3
Gasoline Service Stations 5541 6.4% 4
Lumber and Other Building Materials 5211 5.0% 5
Grocery Stores 5411 4.7% 6
Miscellaneous Retail Stores 5999 3.5% 7
Family Clothing Stores 5651 2.3% 8
Computer and Software Stores 5734 2.3% 9
Auto and Home Supply Stores 5531 1.7% 10
Source: Illinois Department of Revenue
The Department of Revenue has categorized the SIC codes into 10 categories. Table 8
illustrates the results of this categorization. In 2009, the largest portion of sales tax
receipts came from the Automotive and Filling Stations sector. This sector contributed
$1.41 billion, or just fewer than 21%, of the $6.76 billion in sales tax revenue. This
was followed by the Agriculture and All Others category at $1.15 billion. The
Drinking and Eating Places ($855 million), Drugs and Misc. Retail ($845 million), and
General Merchandise ($770 million) categories all contribute more than 11% of total
state sales tax receipts.
Since 1999, the Food category has increased at the fastest rate. From 1999-2009, the
Food category grew an average of 4.4% per year. Drugs & Misc. Retail was the
second fastest growing sector at 4.2%. Two categories actually had declining sales tax
receipts. The Agriculture and All Other category declined 0.2% per year, while sales
tax revenue from Manufacturers dropped an average of 2.9% per year.
In examining the composition of the sales tax base of 1999 and 2009, a few changes
were apparent, though in general the composition was much the same in both years.
The Automotive and Filling Stations category was the largest portion in both years but
accounted for approximately 1.5% less of the total in 2009. The largest change in the
sales tax base could be found in the Agriculture and All Others category which went
from over 21% in 1999 to 17.1% of the sales tax base in 2009. These declines in
proportion of the sales tax base can be accounted for by the approximate increase of 3%
by both the Drinking and Eating Places and Drugs & Misc. Retail categories. In fact
these two categories surpassed General Merchandise between 1999 and 2009 to become
the third and fourth largest contributors to state sales tax receipts.
A break down of the categories by SIC Code can be obtained at
https://www.revenue.state.il.us/app/kob/terms.jsp.
-16-

Table 8. SALES TAX RECEIPTS BY SECTOR
Sector
Sales Tax Receipts
Average Growth % of Total
($Million)
Rate
1999 2009 1999 2009
Difference
Automotive & Filling Stations $1,387.1 $1,414.2 1.5% 22.44% 20.94% -1.51%
Agriculture & All Others $1,306.5 $1,153.6 -0.2% 21.14% 17.08% -4.06%
Drinking and Eating Places $603.0 $854.9 3.9% 9.76% 12.66% 2.90%
Drugs & Misc. Retail $598.7 $845.1 4.2% 9.69% 12.51% 2.82%
General Merchandise $718.1 $770.1 1.5% 11.62% 11.40% -0.22%
Lumber, Bldg, Hardware $384.2 $436.4 2.6% 6.22% 6.46% 0.24%
Furniture & H.H. & Radio $426.7 $428.0 1.8% 6.90% 6.34% -0.57%
Food $244.6 $336.8 4.4% 3.96% 4.99% 1.03%
Apparel $236.0 $284.5 2.4% 3.82% 4.21% 0.39%
Manufacturers $275.3 $231.5 -2.9% 4.46% 3.43% -1.03%
TOTAL $6,180.2 $6,755.1 1.7% 100.0% 100.0% 0.00%
Source: Illinois Department of Revenue
To examine the geographic locale of the sales tax base, the Commission analyzed state
sales tax receipts at the county and municipality level for calendar year 2009. The
Commission first looked at 2009 state sales tax revenue by county. Cook County and
the downstate area each accounted for approximately 36% of the sales tax base, while
the collar counties contributed for just over 28%. The largest 20 counties accounted
for 86% of the sales tax base, while the remaining 82 counties contributed only 14%.
Table 9 shows the results of this analysis. Appendix 6 contains state sales tax data for
all 102 Illinois counties.
At the municipality level of government, Chicago had the largest portion accounting for
just fewer than 14% (or $819 million) of the $5.9 billion dollars in state sales taxes.
Nine other municipalities raised more than $70 million in state sales taxes. These
included Schaumburg ($114M), Springfield ($99M), Naperville ($99), Kankakee
($85M), Peoria ($84M), Rockford ($82M), Aurora ($74M), Orland Park ($72M), and
Bloomington ($70M). The 20 highest grossing municipalities contributed just over
35% of local sales taxes. As seen in Table 10, the top twenty consists of Chicago (1 st ),
followed by the bigger suburbs and downstate cities (2 nd -10 th ), and ending with more
Chicago area suburbs (11 th -20 th ).
Based on this analysis, the majority of the sales tax base is located within Cook and the
Collar County areas with pockets of sales tax revenue coming from the larger
downstate cities.
-17-

Table 9. 2009 STATE SALES TAX RECEIPTS BY
COUNTY
County Total % of Total Rank
Cook $2,131,006,758 35.87% 1
DuPage $646,406,595 10.88% 2
Lake $400,057,346 6.73% 3
Will $281,994,362 4.75% 4
Kane $212,539,371 3.58% 5
Winnebago $141,986,261 2.39% 6
Kankakee $126,910,084 2.14% 7
McHenry $126,371,789 2.13% 8
St. Clair $124,949,800 2.10% 9
Madison $119,142,631 2.01% 10
Rest of State $1,629,924,497 27.43% N/A
State Total $5,941,289,493 100.0% N/A
Source: Illinois Department of Revenue
Table10. 2009 STATE SALES TAX REVENUE BY
MUNICIPALITY
Rank Municipality Total %ofTotal
1 Chicago $ 818,783,117 13.74%
2 Schaumburg $ 114,136,419 1.92%
3 Springfield $ 99,215,667 1.67%
4 Naperville $ 99,168,385 1.66%
5 Kankakee $ 85,019,823 1.43%
6 Peoria $ 83,962,775 1.41%
7 Rockford $ 82,103,896 1.38%
8 Aurora $ 74,367,226 1.25%
9 Orland Park $ 72,353,182 1.21%
10 Bloomington $ 70,205,572 1.18%
11 Joliet $ 69,768,978 1.17%
12 Champaign $ 58,458,463 0.98%
13 Sycamore $ 49,354,205 0.83%
14 Skokie $ 49,235,390 0.83%
15 Glenview $ 48,411,098 0.81%
16 Gurnee $ 46,541,385 0.78%
17 Vernon Hills $ 46,307,551 0.78%
18 Downers Grove $ 46,267,905 0.78%
19 Niles $ 45,244,293 0.76%
20 Oak Brook $ 44,994,598 0.76%
N/A All Others $ 3,853,950,958 64.7%
N/A Total $ 5,957,850,883 100.0%
Source: Illinois Department of Revenue
-18-

Internet Taxation
Several issues surround the topic of Internet taxation; however, the primary focus is
whether to collect sales and use taxes on goods and services sold over the Internet.
Contrary to what some believe, sales and use taxes for sales made on the Internet would
not be a new tax. Sales taxes are already in place in most state and local governments
and, when the tax is not collected by the internet retailer, it should be reported by the
purchaser on his or her State tax returns.
Due to the US Supreme Court National Bellas Hess case in 1967 and the Quill decision
in 1992, it is not required for a seller who does not have a nexus in a state to collect
sales taxes because it is considered an undue burden on the seller. Therefore, Internet
retailing companies only pay sales taxes in the state in which they have a physical
presence. For example, Amazon.com (who has a nexus in the State of Washington)
primarily sells books and CD’s, pays sales taxes to Washington for only those sales
made to Washington residents. The company is not obligated to charge sales taxes on
sales made to non-residents. This provides Amazon.com with a tax advantage over
main street merchandise stores such as Barnes and Noble, who also sell books via the
Internet, but has a nexus in virtually every state. Barnes and Noble must comply with
all of the states complicated sales tax regulations, which in itself is costly to administer.
Opponents to Internet taxation believe that forcing online retailers to collect sales taxes
will stunt the development of the Net economy. However, other political leaders have
become increasingly concerned over the fact that these companies cut into the profits of
constituents’ main street stores. In addition, it is believed that the tax-free environment
of the online retailer is hurting state tax revenues which are becoming more scarce due
to the lagging economy.
A recent study conducted by the Illinois Department of Revenue estimated that $143
million in sales and use taxes due from online sales went unpaid in FY 2008. The
department estimated that this number would grow to $153 million and $163 million in
fiscal years 2009 and 2010. The report, titled “A New Method for Estimating Illinois’s
E-Commerce Losses,” can be found at:
http://www.revenue.state.il.us/AboutIdor/TaxResearch/InternetSalesTaxLosses.pdf
Streamlined Sales Tax Project
The Streamlined Sales and Use Tax (SST) Agreement was a reaction by the States to
attempts by Congress to prohibit states from collecting taxes on on-line sales in early
2000. Tax collections from on-line sales were seen as not required due to the
complexity of doing so as outlined in a 1992 Supreme Court ruling (Quill Corp. V.
North Dakota, 504 U.S. 298) related to mail order sales.
-19-

As described by the Streamlined Sales Tax Governing Board, the purpose of the
Streamlined Sales and Use Tax Agreement (SST) is to provide a road map for states
who want to simplify and modernize sales and use tax administration in the member
states in order to substantially reduce the burden of tax compliance. The Agreement
focuses on improving sales and use tax administration systems for all sellers and for all
types of commerce through all of the following:
A. State level administration of sales and use tax collections.
B. Uniformity in the state and local tax bases.
C. Uniformity of major tax base definitions.
D. Central, electronic registration system for all member states.
E. Simplification of state and local tax rates.
F. Uniform sourcing rules for all taxable transactions.
G. Simplified administration of exemptions.
H. Simplified tax returns.
I. Simplification of tax remittances.
J. Protection of consumer privacy.
In short, the SST agreement is a voluntary sales and use tax collection system that
allows sellers to collect the required taxes on their sales based on a destination based
sourcing scheme. The agreement was to take affect in member states once ten states
had passed laws to come into compliance with the agreement. The SST agreement
went into affect in October of 2005.
The SST agreement essentially does three things that simplify the collection of sales and
use tax from sellers.
1). The SST contains thorough tax base definitions that makes these definitions uniform
from state to state.
2). The SST sets up three technology models using certified sales tax administration
software with which sellers can pay required taxes to all the member states in the
SST. The three technology models are:
Model 1
A certified Service Provider performs all the seller’s sales and use tax functions.
The Streamlined Sales Tax Governing Board lists four companies as Certified
Service Providers. These providers include Avalara, Exactor, ADP Taxware, and
SpeedTax.
Model 2
A Certified Automated System which uses third party sales tax software that is
certified under the SST that allows sellers to remit sales and use tax on their own.
-20-

Model 3
The final model allows sellers to develop their own sales and use tax software
which is certified by the SST.
3). The SST requires registered sellers to source sales of property, services and digital
goods on a destination basis. This means that tax revenue would be remitted to the
local and state tax districts where the property is delivered or where a service is
performed, not where the seller is located.
According to the Streamlined Sales Tax Governing Board, there are nineteen full
member states and three associate member states. A full member state is a state that is
in compliance with the Streamlined Sales and Use Tax agreement through its laws,
rules, regulations, and policies.
An associate member state is either (a) a state that is in compliance with the
Streamlined Sales and Use Tax Agreement except that its laws, rules regulations and
policies to bring the state into compliance are not in effect but are scheduled to take
effect on or before July 1, 2009, or (b) a State that has achieved substantial compliance
with the terms of the Streamlined Sales and Use Tax Agreement taken as a whole, but
not necessarily each provision, and there is an expectation that the state will achieve
compliance by July 1, 2009.
The National Conference of State Legislatures (NCSL) states that six other states have
had legislation introduced to come into compliance with the Streamlined Sales and Use
Tax Agreement in recent years. These states were Florida, Illinois, Hawaii,
Massachusetts, Missouri, and Wisconsin. The recent inclusion of certain candies,
grooming and hygiene products, and soft drinks into the category of fully taxed items
under the sales tax as part of Public Act 096-0034 was one step by Illinois to more fully
conform to the SST.
Table 11, on the following page, lists all the full and associate members of the SST.
-21-

Table 11. STREAMLINED SALES TAX PROJECT
STATES
Full Member States
Arkansas
North Carolina
Indiana
North Dakota
Iowa
Oklahoma
Kansas
Rhode Island
Kentucky
South Dakota
Michigan
Vermont
Minnesota
Washington
Nebraska
West Virginia
Nevada
Wyoming
New Jersey
Associate Member States
Ohio
Tennessee
Utah
Source: Streamlined Sales Tax Governing Board
-22-

Flow Chart for Sales Taxes
The flow chart provided on the next page is an attempt to provide some organizational
review of Illinois sales taxes and the distribution of funds. As the chart depicts, after
an item is purchased, one must determine if it subject to sales taxation. Many items are
exempt for sales taxation in Illinois and Appendix 1 provides a list of such items and
the dates in which the exemption was enacted. If it is determined that an item is subject
to sales taxation, then one must ascertain if it was purchased in Illinois. If the item is
purchased from a vendor with a nexus in Illinois, it is subject to an Occupation Tax. If
it is purchased from a vendor that does not have a physical presence within Illinois, the
consumer is responsible to pay a Use Tax.
Additional considerations must be made in order to determine the final sales tax. One
must decide whether the item is considered a qualified food, drug, or medical
appliance. These items are taxed at 1%, which is forwarded to local governments.
Also, many local government units have additional home-rule taxes. These units are
provided in Table 6 and Appendix 5.
Finally, once the sales tax is paid by either the retailer (Occupation Tax) or purchaser
(Use Tax), the funds must be distributed between the State and local governments.
Funds received by the State are primarily deposited into the General Revenue Fund.
However, some money is given to the Build Illinois Fund, the Illinois Tax Increment
Fund, the Capital Projects Fund, and the Common Schools Special Account Fund.
All of the previous considerations, plus some additional issues are depicted in the
following Illinois Sales Tax Flowcharts.
-23-

CHART 2
Illinois Sales Tax Flowchart
See Appendix 1 for
a list of sales tax
exempt items
Is the item
exempt from
sales taxes?
Yes
0% Sales Tax
Service Occupation Tax
No
Service Use Tax
A
No
Is the item
purchased from
a retailer?
Yes
Is the item
purchased in
Illinois?
No
Is the item
purchased from
a retailer?
No
B
Yes
Retailers’
Occupation Tax
Use Tax
Yes
1% Sales
Tax to Local
Government
No
Is the item a
qualifying food,
drug, or medical
device?
Is the item a
qualifying food,
drug, or medical
device?
Consumer pays
1% tax or the
difference of
Illinois tax and tax
paid
Yes
No
See Table 6 and Appendix
5 for a list of home-rule
jurisdictions
Does a Home-Rule
Tax apply?
Does a Home-Rule
Tax apply?
Yes
No
Yes
No
Appropriate
Home-rule
tax is paid by
Retailer
Appropriate
Home-rule
tax is paid by
Consumer
Retailer forwards
6.25% Tax to the
Dept. of Revenue
Consumer pays 6.25%
Tax or the difference of
Illinois tax and tax paid
C
D
Flowchart continued on next page
-24-

CHART 2 (continued)
Illinois Sales Tax Flowchart
(continued)
A
B
0% sales tax
on services
No
Is the item
purchased from
a serviceman?
Is the item
purchased from
a serviceman?
No
0% sales tax
on services
Yes
Yes
Appropriate
Home-rule
tax is paid by
Retailer
Yes
Does a Home-Rule
Tax apply?
Does a Home-Rule
Tax apply?
Yes
Appropriate
Home-rule
tax is paid by
Consumer
C
Retailer forwards
6.25% Tax to the
Dept. of Revenue
Consumer pays 6.25%
tax or the difference of
Illinois tax and tax paid
D
See Table 6 and Appendix
5 for a list of home-rule
jurisdictions
Distribution
C
D
80% to State
Government
16% to Local
Government Tax Fund
4% to County and
Mass Transit Fund
80% to State
Government
20% to State and Local
Tax Reform Fund
E
1.75% to Build
Illinois Fund
3.8% to Build
Illinois fund to
retire bonds
0.27% to Illinois
Tax Increment
Fund
25% to Common
Schools Special
Account Fund
Revenues from certain
items to Capital
Projects Fund
Remainder to General
Revenue Fund with 2
transfers out
3/32 from downstate counties and
municipalities with mass transit
districts to the Downstate Public
Transportation Fund
3/32 from Madison, Monroe,
and St. Clair Counties to the
Downstate Public
Transportation Fund
-25-

APPENDIX 1: ILLINOIS SALES TAX EXEMPTIONS
Exemption
Year Enacted
Feed and Seed Exemption 1933
Occasional Sales 1933
Charitable, Religious, Governmental, and Educational Exemption 1953
Demonstration Use Prior to Resale 1955
Interim Use Prior to Sale Exemption 1955
Property Acquired by Non-Resident before Relocating in Illinois Exemption 1955
Traded-In Property Exemption 1955
Use by Nonresidents While Temporarily Passing Through Illinois Exemption 1955
Retailer’s Discount 1960
Sales by Exempt Organizations 1961
Newsprint and Ink to Newspapers and Magazines Exemption 1965
Sales of Fuel to Vessels on Bordering Rivers 1968
Rolling Stock Exemption 1968
Pollution Control Facilities Exemption 1970
Sales Through Penny Bulk Vending Machines 1972
Sales of Motor Vehicles to Non-Residents Exemption 1974
Farm Chemicals Exemptions 1975
Nutrition Program for the Elderly Exemption 1975
Manufacturing and Assembling Machinery and Equipment Exemption 1979
Farm Machinery and Equipment Exemption 1980
Food, Drugs, and Medical Appliances Rate Reduction 1980
Gasohol Discount 1980
Low Sulfur Dioxide Emissions Coal Fueled Device Exemption 1980
Distillation Machinery and Equipment Exemption 1981
Graphic Arts Machinery and Equipment Exemption 1981
Building Materials within Enterprise Zone Exemption 1982
Teacher Sponsored Student Organization Exemption 1983
Sales to County Fair Association Exemption 1983
Replacement Vehicles Exemption 1984
Property Used in the Operation of Pollution Control Facilities 1985
Designated Personal Property within Enterprise Zone Exemption 1985
Legal Tender, Medallions, and Bullion Exemption 1985
Building Materials to High Economic Impact Business Exemption 1986
Coal Machinery and Equipment Exemption 1986
Oil Machinery and Equipment Exemption 1986
Photo Processing Machinery and Equipment Exemption 1988
Sales of Vehicles to Automobile Renters Exemption 1988
Sales to Not for Profit Music and Dramatic Arts Organization Exemption 1988
Senior Citizens Service Enterprises Exemption 1988
Specified Photoprocessing Charges Exemption 1988
Fuel and Petroleum Products for International Flight Exemption 1989
Machinery/Equipment for Operation of High Economic Impact Service Facility 1989
Nursing Homes Food Drugs and Medical Appliances Exemption 1991
Sales of Tangible Personal Property Used by Aircraft Maintenance Facilities 1991
Sales of Machinery and Equipment in Operation of Aircraft Maintenance Facilities 1991
Manufacturer’s Purchase Credit 1995
Disaster Relief Donation and Infrastructure Repair Exemption 1996
Leased Property to Hospitals or Government Bodies 1996
Vending Machine Exemption 2000
Majority Blended Ethanol 2003
Biodiesel Discount and Exemption 2003
Building Materials within Enterprise Zone Exemption 2006
Aircraft Support Center Exemption 2007
SOURCE: Illinois Tax Expenditure Report, Illinois Comptroller's Office
-26-

Appendix 2. ILLINOIS SALES TAX EXEMPTION STATISTICS
($ Millions)
FY 1996 FY 1997 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008
Average % Growth
(1996-2008)
Food, Drugs, and Medical Appliances Rate
Reduction $ 808 $ 864 $ 905 $ 918 $ 1,050 $ 1,100 $ 1,160 $ 1,169 $ 1,223 $ 1,300 $ 1,371 $ 1,461 $ 1,408 4.8%
Sales to Exempt Organizations $ 488 $ 512 $ 536 $ 558 $ 670 $ 667 $ 874 $ 893 $ 930 $ 967 $ 1,012 $ 1,020 $ 515 2.5%
Traded-In Property Exemption $ 300 $ 300 $ 300 $ 300 $ 325 $ 325 $ 350 $ 339 $ 343 $ 466 $ 374 $ 370 $ 357 2.1%
Farm Chemicals (Includes Feed and Seed)
Exemption $ 144 $ 151 $ 158 $ 164 $ 185 $ 190 $ 200 $ 204 $ 209 $ 212 $ 221 $ 165 $ 207 3.7%
Manufacturing and Assembling Machinery
Exemption $ 112 $ 117 $ 122 $ 127 $ 144 $ 147 $ 155 $ 158 $ 162 $ 165 $ 175 $ 261 $ 200 6.0%
Gasahol Discount $ - $ - $ - $ 28 $ 41 $ 50 $ 46 $ 60 $ 63 $ 78 $ 101 $ 101 $ 133 20.0%
Retailer's Discount $ 82 $ 86 $ 88 $ 90 $ 103 $ 102 $ 104 $ 107 $ 113 $ 119 $ 126 $ 126 $ 127 3.8%
Biodiesel Discount and Exemption $ - $ - $ - $ - $ - $ - $ - N/A N/A $ 8 $ 46 $ 68 $ 111 203.8%
Rolling Stock Exemption $ 56 $ 50 $ 85 $ 70 $ 128 $ 70 $ 92 $ 104 $ 42 $ 50 $ 68 $ 108 $ 52 10.5%
Sales of Motor Vehicles to Non-Residents
Exemption $ 60 $ 62 $ - $ 51 $ 75 $ 46 $ 76 $ 72 $ 70 $ 69 $ 36 $ 34 $ 47 5.3%
Newsprint and Ink to Newspapers and Magazines
Exemption N/A N/A N/A $ 40 $ 40 $ 40 $ 40 $ 40 $ 41 $ 42 $ 42 $ 38 $ 39 -0.2%
Designated Tangible Personal Property within
Enterprise Zone Exemption N/A N/A N/A $ 27 $ 28 $ 30 $ 30 $ 32 $ 27 $ 25 $ 24 $ 37 $ 37 4.9%
Farm Machinery and Equipment Exemption N/A N/A N/A $ 39 $ 44 $ 45 $ 45 $ 46 $ 47 $ 48 $ 50 $ 32 $ 36 0.3%
Manufacturer's Purchase Credit N/A N/A N/A N/A $ 18 $ 21 $ 20 $ 28 $ 22 $ 25 $ 29 $ 29 $ 28 7.4%
Graphic Arts Machinery and Equipment Exemption N/A N/A N/A N/A $ 7 $ 7 $ 4 N/A $ - $ - $ 4 $ 4 $ 23 124.7%
Sales of Vehicles to Automobile Rentors
Exemption N/A N/A N/A $ 13 $ 28 $ 13 $ 25 $ 24 $ 29 $ 43 $ 52 $ 51 $ 16 18.3%
Commercial Distribution Fee (CDF) Exemption N/A N/A N/A $ - $ - $ - $ - $ - $ 38 $ 34 $ - $ - $ - N/A
State Sales Tax Exemption on Motor Fuels $ - $ - $ - $ - $ - $ 163 $ - $ - $ - $ - $ - $ - $ - N/A
All Other $ 172 $ 191 $ 238 $ 48 $ 38 $ 35 $ 25 $ 29 $ 21 $ 21 $ 21 $ 24 $ 22 -9.0%
Total Sales and Use Tax Exemptions $ 2,221 $ 2,332 $ 2,431 $ 2,473 $ 2,924 $ 3,053 $ 3,245 $ 3,305 $ 3,379 $ 3,672 $ 3,753 $ 3,928 $ 3,357 3.8%
Source: Tax Expenditure Report, Illinois Comptroller's Office
-27-

Appendix 3. SALES TAX RATE BY STATE
State State Rate Rank Range of Local Rates
Alabama 4.00% 38 0% - 8%
Alaska 0.00% 47 0% - 7.5%
Arizona 5.60% 27 0 -5.5%
Arkansas 6.00% 13 0% - 5.50%
California 7.25% 1 1.00% - 3%
Colorado 2.90% 46 0% - 7%
Connecticut 6.00% 13 0%
Delaware 0.00% 47 0%
District of Columbia 6.00% 13 0%
Florida 6.00% 13 0% - 1.50%
Georgia 4.00% 38 1% - 4%
Hawaii 4.00% 38 0% - 0.5%
Idaho 6.00% 13 0% - 3%
ILLINOIS 6.25% 10 0% - 4.25%
Indiana 7.00% 2 0%
Iowa 6.00% 13 0% - 2%
Kansas 5.30% 30 0% - 4%
Kentucky 6.00% 13 0%
Louisiana 4.00% 38 0% - 6.75%
Maine 5.00% 31 0%
Maryland 6.00% 13 0%
Massachusetts 6.25% 10 0%
Michigan 6.00% 13 0%
Minnesota 6.875% 7 0% - 1%
Mississippi 7.00% 2 0% - .25%
Missouri 4.23% 37 .5% - 6.625%
Montana 0.00% 47 0%
Nebraska 5.50% 28 0% - 2%
Nevada 6.85% 8 0% - 1.25%
New Hampshire 0.00% 47 0%
New Jersey 7.00% 2 0%
New Mexico 5.00% 31 .125% - 5.625%
New York 4.00% 38 0% - 5%
North Carolina 5.75% 26 2% - 3%
North Dakota 5.00% 31 0% - 2.50%
Ohio 5.50% 28 0 - 2.25%
Oklahoma 4.50% 36 0% - 6.35%
Oregon 0.00% 47 0%
Pennsylvania 6.00% 13 0% - 2%
Rhode Island 7.00% 2 0%
South Carolina 6.00% 13 0% - 3%
South Dakota 4.00% 38 0% - 2%
Tennessee 7.00% 2 1.5% - 2.75%
Texas 6.25% 10 0% - 2%
Utah 4.70% 35 1% - 5.25%
Vermont 6.00% 13 0% - 1%
Virginia 4.00% 38 1%
Washington 6.50% 9 .5% - 3%
West Virginia 6.00% 13 0%
Wisconsin 5.00% 31 0% - 1.5%
Wyoming 4.00% 38 0% - 4%
Source: Sales Tax Institute, as of 4/1/2010
-28-

Appendix 4. STATE SALES TAX REVENUE
(2007)
Rank State General Sales Tax Rank State Per Capita
N/A United States $236,333 N/A United States $784
1 California $32,669 1 Hawaii $1,993
2 Florida $21,749 2 Washington $1,679
3 Texas $20,435 3 Wyoming $1,336
4 New York $10,880 4 Nevada $1,252
5 Washington $10,861 5 Florida $1,192
6 Pennsylvania $8,662 6 Tennessee $1,099
7 New Jersey $8,346 7 Mississippi $1,081
8 Michigan $7,983 8 Arkansas $1,025
9 ILLINOIS $7,817 9 New Jersey $961
10 Ohio $7,781 10 New Mexico $936
11 Tennessee $6,764 11 Arizona $897
12 Georgia $6,382 12 California $894
13 Arizona $5,684 13 South Dakota $893
14 Indiana $5,424 14 Connecticut $865
15 North Carolina $5,202 15 Minnesota $860
16 Minnesota $4,471 16 Texas $855
17 Wisconsin $4,159 17 Indiana $855
18 Massachusetts $4,076 18 Idaho $852
19 Virginia $3,539 19 Nebraska $836
20 Louisiana $3,481 20 Rhode Island $828
21 Maryland $3,448 21 Louisiana $811
22 Missouri $3,273 22 Kansas $808
23 South Carolina $3,234 23 Maine $801
24 Nevada $3,213 24 Michigan $793
25 Mississippi $3,156 25 North Dakota $757
26 Connecticut $3,030 26 Wisconsin $742
27 Arkansas $2,904 27 Utah $739
28 Kentucky $2,818 28 South Carolina $734
29 Hawaii $2,558 29 Pennsylvania $697
30 Alabama $2,278 30 Ohio $679
31 Kansas $2,242 31 Georgia $669
32 Colorado $2,219 32 Kentucky $664
33 Oklahoma $1,964 33 Massachusetts $632
34 Utah $1,954 34 West Virginia $623
35 New Mexico $1,844 35 Maryland $614
36 Iowa $1,787 36 ILLINOIS $608
37 Nebraska $1,484 37 Iowa $598
38 Idaho $1,278 38 North Carolina $574
39 West Virginia $1,130 39 New York $564
40 Maine $1,055 40 Missouri $557
41 Rhode Island $876 41 Oklahoma $543
42 South Dakota $711 42 Vermont $538
43 Wyoming $698 43 Alabama $492
44 North Dakota $484 44 Virginia $459
45 Vermont $334 45 Colorado $456
46 Alaska $0 46 Alaska $0
46 Delaware $0 46 Delaware $0
46 Montana $0 46 Montana $0
46 New Hampshire $0 46 New Hampshire $0
46 Oregon $0 46 Oregon $0
Source: The 2010 Statistical Abstract, U.S. Census Bureau
-29-

Appendix 5. ILLINOIS HOME RULE UNITS
(April 2010)
Home Rule Unit
Combined
Sales Tax Rate
Home Rule Unit
Combined
Sales Tax Rate
Addison 8.00% Buffalo Grove (Lake) 8.00%
Alsip 9.75% Burbank 9.75%
Alton (Alton Square Business District ) 8.85% Burnham 10.00%
Alton (Outside Above District) 7.85% Cahokia 8.10%
Arlington Heights 10.00% Calumet City 10.00%
Aurora (DuPage) 8.25% Calumet Park 10.00%
Aurora (Kane) 8.25% Carbon Cliff 6.75%
Aurora (Kendall) 8.50% Carbondale (Jackson) 7.75%
Aurora (Will) 8.25% Carbondale (Williamson) 8.75%
Bannockburn 7.50% Carlock 6.75%
Barrington Hills (Cook) 9.00% Carol Stream 7.75%
Bartlett (Cook) 9.00% Carpentersville 8.50%
Bartlett (DuPage) 7.00% Carterville 8.25%
Bartonville 6.75% Champaign 8.75%
Batavia (DuPage) 7.50% Channahon (Grundy) 7.25%
Batavia (Kane) 7.50% Channahon (Will) 8.00%
Bedford Park 9.75% Chicago (Cook) 10.25%
Belleville (Business Districts) 8.85% Chicago (DuPage) 8.25%
Belleville (Outside above Districts) 7.85% Chicago Heights 10.00%
Bellwood (Business Districts) 11.50% Chicago Ridge 9.75%
Bellwood (Outside above Districts) 10.50% Christopher 7.25%
Benton 7.50% Cicero 10.50%
Berkeley (Outside Business Districts) 10.00% Collinsville (Madison - Crossing South Business District) 8.60%
Berwyn 10.00% Collinsville (Madison - Other Business Districts) 9.10%
Bloomingdale (Business Districts) 8.75% Collinsville (Madison - Outside Above Districts) 8.10%
Bloomingdale (Outside Above Districts) 7.75% Collinsville (St. Clair) 8.60%
Bloomington 7.75% Cook County 9.00%
Bolingbrook (DuPage) 8.50% Country Club Hills 10.25%
Bolingbrook (Will) 8.50% Countryside 9.75%
Bridgeview 10.00% Crainville 8.25%
Bryant 6.75% Crystal Lake 7.75%
Buffalo Grove (Cook) 10.00% Danville 7.75%
-30-

Appendix 5. ILLINOIS HOME RULE UNITS
(April 2010)
Home Rule Unit
Combined
Sales Tax Rate
Home Rule Unit
Combined
Sales Tax Rate
Darien 8.00% Fairview Heights (Outside Above District) 7.85%
Decatur 8.00% Flora 7.25%
Deerfield (Cook) 10.00% Forest View 10.00%
Deerfield (Lake) 8.00% Freeport 8.00%
DeKalb 8.00% Galesburg 7.50%
DePue 6.75% Glen Ellyn 8.25%
Des Plaines 10.00% Glendale Heights 8.25%
Dolton 9.50% Glenview 9.75%
Downers Grove 8.00% Glenwood 9.00%
DuQuoin 8.25% Golf 9.00%
East Dundee (Cook) 10.50% Granite City (Business District) 9.10%
East Dundee (Kane - Buisiness Districts) 9.00% Granite City (Outside Above District) 8.35%
East Dundee (Kane - Outside Above Districts) 8.50% Gurnee 7.50%
East Hazel Crest 9.50% Hanover Park (Cook) 9.50%
East St. Louis 8.85% Hanover Park (DuPage) 7.50%
Edwardsville (Chouteau Township - Business District) 7.85% Harvey 10.00%
Edwardsville (Chouteau Township - Outside Above District) 6.85% Harwood Heights 10.25%
Edwardsville (Edwardsville Township - Business District) 7.85% Hazel Crest 10.00%
Edwardsville (Edwardsville Township - Outside Above District) 6.85% Herrin 8.50%
Edwardsville (Pin Oak Township - Business District) 7.60% Highland Park (Lake) 8.00%
Edwardsville (Pin Oak Township - Outside Above District) 6.60% Highwood 8.50%
Elgin (Cook) 9.75% Hillside 10.00%
Elgin (Kane) 7.75% Hodgkins 9.00%
Elk Grove Village (Cook) 10.00% Hoffman Estates (Cook) 10.00%
Elk Grove Village (DuPage) 8.00% Hoffman Estate (Kane) 8.00%
Elmhurst (Cook) 10.00% Homer Glen 8.00%
Elmhurst (DuPage) 8.00% Hopkins Park 6.25%
Elmwood Park 10.00% Inverness 9.00%
Elwood 8.00% Jacksonville 7.00%
Evanston 10.00% Joliet (Kendall) 8.50%
Evergreen Park
9.75% Joliet (Will) 8.25%
Fairview Heights (Business District) 8.35% Kankakee 6.25%
-31-

Appendix 5. ILLINOIS HOME RULE UNITS
(April 2010)
Home Rule Unit
Combined
Sales Tax Rate
Home Rule Unit
Combined
Sales Tax Rate
Lake Barrington 7.00% Norridge 10.25%
Lake Bluff 8.00% North Chicago 7.00%
Lake Forest 7.50% North Utica 6.50%
Lake in th Hills 7.50% Northbrook (Cook) 9.75%
Lansing 9.50% Northbrook (Lake) 7.75%
LaSalle 7.00% Northlake (Cook) 10.00%
Lincolnshire 7.00% Northlake (DuPage) 8.00%
Lincolnwood 10.00% Oak Forest 9.00%
Manhattan 8.00% Oak Lawn 9.50%
Marion 8.50% Oak Park 10.00%
Mascoutah 7.60% Oakbrook Terrace (Business District) 9.25%
Maywood 9.00% Oakbrook Terrace (Outside Above District) 8.25%
McCook 10.00% O'Fallon 7.85%
McHenry 7.00% Old Mill Creek 7.00%
Mettawa 7.00% Onarga 6.25%
Midlothian 9.00% Orland Park 9.75%
Moline 7.50% Oswego 7.25%
Monee 8.00% Palatine 10.00%
Monmouth 7.25% Park City 8.00%
Morton Grove 10.00% Park Forest (Cook) 9.00%
Mound City 6.25% Park Forest (Will) 7.00%
Mount Prospect 10.00% Park Ridge 10.00%
Mount Vernon 7.50% Pekin (Peoria) 8.00%
Muddy 7.00% Pekin (Tazewell) 8.00%
Mundelein 8.00% Peoria (Business District) 9.25%
Murphysboro 7.25% Peoria (Outside Above District) 8.25%
Naperville 7.25% Peoria Heights (Peoria) 7.75%
Naples 6.25% Peoria Heights (Tazewell) 7.75%
Nauvoo 7.00% Peru 7.00%
New Lenox 8.00% Phoenix 9.00%
Niles 10.00% Plainfield (Kendall) 8.25%
Normal 7.50% Plainfield (Will) 8.00%
-32-

Appendix 5. ILLINOIS HOME RULE UNITS
(April 2010)
Home Rule Unit
Combined
Sales Tax Rate
Home Rule Unit
Combined
Sales Tax Rate
Posen 9.50% Tilton 7.50%
Prairie Grove 7.00% Tinley Park (Cook) 9.00%
Quincy 7.75% Tinley Park (Will) 7.00%
Rantoul 8.50% Tuscola 6.75%
Riverdale 9.00% University Park (Cook) 10.00%
Riverwoods 7.50% University Park (Will) 8.00%
Robbins 9.00% Urbana 8.75%
Rock Island 7.00% Valmeyer 6.50%
Rockdale 7.00% Volo 8.00%
Rolling Meadows 10.00% Warrenville 8.50%
Romeoville 8.50% Washington 8.00%
Rosemont 10.25% Watseka 7.00%
Round Lake Beach 7.50% Waukegan 8.00%
Sauget 7.60% West Chicago 7.75%
Schaumburg (Cook) 10.00% West City 7.25%
Schaumburg (DuPage) 8.00% West Dundee 8.50%
Schiller Park 9.75% West Frankfort 7.25%
Sesser 7.25% Westmont 7.75%
Sherman 6.75% Wheaton 8.25%
Skokie 10.00% Wheeling (Cook) 10.00%
South Barrington 10.00% Wheeling (Lake 8.00%
South Holland 9.50% Williamsville 6.25%
Springfield 8.00% Wilmette 9.25%
Standard 6.25% Winnetka 9.00%
Stickney 10.00% Woodridge (Cook) 9.75%
St. Charles (DuPage) 8.00% Woodridge (DuPage) 7.75%
St. Charles (Kane) 8.00% Woodridge (Will) 7.75%
Stone Park 10.25%
Streamwood 10.00%
Sycamore 7.50%
Thornton 9.00%
Source: Illinois Secretary of State
-33-

Appendix 6. 2009 STATE SALES TAX
RECEIPTS BY COUNTY
County State Sales Tax % of Total Rank
Adams $ 37,434,217 0.63% 23
Alexander $ 1,068,109 0.02% 96
Bond $ 4,346,807 0.07% 78
Boone $ 15,550,608 0.26% 36
Brown $ 1,463,014 0.02% 94
Bureau $ 10,936,079 0.18% 50
Calhoun $ 1,063,358 0.02% 98
Carroll $ 6,065,363 0.10% 63
Cass $ 4,423,356 0.07% 77
Champaign $ 94,795,624 1.60% 13
Christian $ 13,842,351 0.23% 39
Clark $ 5,378,659 0.09% 70
Clay $ 4,745,920 0.08% 75
Clinton $ 15,127,380 0.25% 37
Coles $ 26,182,110 0.44% 27
Cook $ 2,131,006,758 35.87% 1
Crawford $ 6,647,083 0.11% 58
Cumberland $ 1,852,529 0.03% 91
DeKalb $ 78,633,133 1.32% 15
DeWitt $ 7,381,889 0.12% 57
Douglas $ 8,772,141 0.15% 54
DuPage $ 646,406,595 10.88% 2
Edgar $ 6,003,635 0.10% 64
Edwards $ 2,297,677 0.04% 89
Effingham $ 28,994,762 0.49% 26
Fayette $ 8,412,503 0.14% 56
Ford $ 5,116,839 0.09% 71
Franklin $ 13,636,139 0.23% 41
Fulton $ 10,789,601 0.18% 52
Gallatin $ 991,506 0.02% 100
Greene $ 2,936,294 0.05% 86
Grundy $ 61,628,248 1.04% 18
Hamilton $ 1,788,531 0.03% 92
Hancock $ 4,327,786 0.07% 79
Hardin $ 657,842 0.01% 101
Henderson $ 1,345,113 0.02% 95
Henry $ 19,340,918 0.33% 32
Iroquois $ 13,362,662 0.22% 44
Jackson $ 32,581,143 0.55% 24
Jasper $ 3,023,137 0.05% 85
Jefferson $ 23,185,573 0.39% 29
Jersey $ 8,592,885 0.14% 55
JoDaviess $ 10,880,554 0.18% 51
Johnson $ 2,492,298 0.04% 87
Kane $ 212,539,371 3.58% 5
Kankakee $ 126,910,084 2.14% 7
Kendall $ 44,021,590 0.74% 21
Knox $ 22,871,935 0.38% 30
Lake $ 400,057,346 6.73% 3
LaSalle $ 58,561,283 0.99% 19
Lawrence $ 4,324,315 0.07% 80
Source: Illinois Deaprtment of Revenue
-34-

Appendix 6. 2009 STATE SALES TAX
RECEIPTS BY COUNTY
County State Sales Tax % of Total Rank
Lee $ 12,759,716 0.21% 46
Livingston $ 16,743,607 0.28% 34
Logan $ 10,137,920 0.17% 53
Macon $ 56,555,054 0.95% 20
Macoupin $ 13,141,340 0.22% 45
Madison $ 119,142,631 2.01% 10
Marion $ 13,392,946 0.23% 43
Marshall $ 3,087,733 0.05% 84
Mason $ 5,416,764 0.09% 69
Massac $ 3,442,970 0.06% 83
McDonough $ 12,466,134 0.21% 47
McHenry $ 126,371,789 2.13% 8
McLean $ 91,115,002 1.53% 14
Menard $ 2,393,553 0.04% 88
Mercer $ 3,646,433 0.06% 82
Monroe $ 13,588,771 0.23% 42
Montgomery $ 13,790,251 0.23% 40
Morgan $ 15,588,394 0.26% 35
Moultrie $ 4,603,796 0.08% 76
Ogle $ 14,357,673 0.24% 38
Peoria $ 100,847,021 1.70% 12
Perry $ 5,905,119 0.10% 66
Piatt $ 4,751,028 0.08% 74
Pike $ 4,888,994 0.08% 73
Pope $ 507,977 0.01% 102
Pulaski $ 1,067,126 0.02% 97
Putnam $ 6,593,763 0.11% 59
Randolph $ 21,044,700 0.35% 31
Richland $ 6,296,968 0.11% 60
Rock Island $ 68,946,327 1.16% 17
Saline $ 11,166,556 0.19% 49
Sangamon $ 117,115,734 1.97% 11
Schuyler $ 1,770,451 0.03% 93
Scott $ 1,024,248 0.02% 99
Shelby $ 5,103,631 0.09% 72
St. Clair $ 124,949,800 2.10% 9
Stark $ 1,863,728 0.03% 90
Stephenson $ 18,580,888 0.31% 33
Tazewell $ 69,821,406 1.18% 16
Union $ 5,552,100 0.09% 67
Vermilion $ 29,246,165 0.49% 25
Wabash $ 3,965,716 0.07% 81
Warren $ 5,532,220 0.09% 68
Washington $ 6,105,687 0.10% 61
Wayne $ 6,092,582 0.10% 62
White $ 5,995,253 0.10% 65
Whiteside $ 23,853,694 0.40% 28
Will $ 281,994,362 4.75% 4
Williamson $ 40,915,959 0.69% 22
Winnebago $ 141,986,261 2.39% 6
Woodford $ 11,266,899 0.19% 48
Source: Illinois Deaprtment of Revenue
-35-

BACKGROUND
The Commission on Government Forecasting and Accountability (CGFA), a bipartisan, joint
legislative commission, provides the General Assembly with information relevant to the
Illinois economy, taxes and other sources of revenue and debt obligations of the State. The
Commission's specific responsibilities include:
1) Preparation of annual revenue estimates with periodic updates;
2) Analysis of the fiscal impact of revenue bills;
3) Preparation of "State Debt Impact Notes" on legislation which would
appropriate bond funds or increase bond authorization;
4) Periodic assessment of capital facility plans;
5) Annual estimates of public pension funding requirements and preparation of
pension impact notes;
6) Annual estimates of the liabilities of the State's group health insurance
program and approval of contract renewals promulgated by the Department of
Central Management Services;
7) Administration of the State Facility Closure Act.
The Commission also has a mandate to report to the General Assembly ". . . on economic
trends in relation to long-range planning and budgeting; and to study and make such
recommendations as it deems appropriate on local and regional economic and fiscal policies
and on federal fiscal policy as it may affect Illinois. . . ." This results in several reports on
various economic issues throughout the year.
The Commission publishes several reports each year. In addition to a Monthly Briefing, the
Commission publishes the "Revenue Estimate and Economic Outlook" which describes and
projects economic conditions and their impact on State revenues. The “Bonded Indebtedness
Report" examines the State's debt position as well as other issues directly related to
conditions in the financial markets. The “Financial Conditions of the Illinois Public
Retirement Systems” provides an overview of the funding condition of the State’s retirement
systems. Also published are an Annual Fiscal Year Budget Summary; Report on the
Liabilities of the State Employees’ Group Insurance Program; and Report of the Cost and
Savings of the State Employees’ Early Retirement Incentive Program. The Commission also
publishes each year special topic reports that have or could have an impact on the economic
well being of Illinois. All reports are available on the Commission’s website.
These reports are available from:
Commission on Government Forecasting and Accountability
703 Stratton Office Building
Springfield, Illinois 62706
(217) 782-5320 (217) 782-3513 (FAX)
http://www.ilga.gov/commission/cgfa/cgfa_home.html